The USX stablecoin on Solana lost its dollar peg on December 26, collapsing to just $0.10 on secondary markets.<\/p>\n
This sudden drop, caused by a severe lack of liquidity, marks one of the most extreme depegs for a major stablecoin this year.<\/p>\n
According to blockchain security firm PeckShield, which raised<\/a> an alert about the event, the depeg was a direct result of a liquidity drain on trading platforms.<\/p>\n The stablecoin\u2019s developer, Solstice, responded quickly. In a statement posted on X, the team confirmed<\/a> the issue was isolated to secondary markets, noting that the funds backing USX in its primary system were \u201centirely unaffected and >100% collateralized.\u201d They emphasized that 1:1 redemptions through their primary market remained operational.<\/p>\n The situation stabilized after Solstice and its market makers injected fresh liquidity, pulling the price back to approximately $0.94. Despite this recovery, the brief crash established a new all-time low of $0.8285 for USX, as recorded by CoinGecko.<\/p>\n The stablecoin has since returned near its $1.00 target, currently trading around $0.995. While the 24-hour price change shows only a minor 0.3% decline, the dramatic intraday swing from $0.8285 to a high of $1.01 highlights the volatility triggered by the liquidity shortfall.<\/p>\n This incident is a reminder of the persistent fragility of certain stablecoin designs when faced with secondary market pressures. It echoes other significant depegs in 2025; for example, the one in April where Synthetix\u2019s sUSD stablecoin fell<\/a> below $0.70 following protocol changes that altered its collateral mechanics. At the time, founder Kain Warwick darkly joked about the situation by renaming his social account to \u201ckain.depeg.\u201d<\/p>\n More recently in November, Stream Finance\u2019s XUSD stablecoin crashed<\/a> to $0.30 after the protocol revealed a $93 million loss from an external fund manager.<\/p>\n The USX event differs in that its underlying collateral was not compromised, framing it purely as a secondary market liquidity failure. Meanwhile, Solstice has committed to obtaining a third-party attestation report, in what some market observers believe is an attempt to rebuild trust.<\/p>\n However, for investors and the wider crypto community, these repeated events serve as a stark reminder of the risks that remain even in stablecoins backed by verifiable assets, where market structure can sometimes fail before the fundamentals do.<\/p>\n The post Solana Stablecoin USX Plummets to $0.10 in Depeg Amid Liquidity Crunch<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" The USX stablecoin on Solana lost its dollar peg on December 26, collapsing to just $0.10 on secondary markets. This sudden drop, caused by a severe lack of liquidity, marks one of the most extreme depegs for a major stablecoin this year. Market Strain and Rapid Response According to blockchain security firm PeckShield, which raised […]<\/p>\n","protected":false},"author":0,"featured_media":123201,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-123200","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/123200"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=123200"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/123200\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/123201"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=123200"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=123200"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=123200"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}A Recurring Challenge for Algorithmic Stablecoins<\/h2>\n